Tuesday, 21 May 2019
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Best Life Insurance Companies: Top Term and Whole Life Insurers in 2019 – ValuePenguin


Life Insurance Companies with the Best Ratings

Life insurance offers financial protection to your family and is a product that you typically keep for decades, so it’s important to find a top rated insurer. We’ve listed below the companies with the best financial strength ratings and fewest customer complaints.

MassMutual

MassMutual
MassMutual

Consider this if you want an insurer with competitive prices, a wide range of products and some of the highest ratings.

If you’re looking for the best rated insurer with competitive prices, MassMutual is our top choice. They hold the top financial strength rating available and have a disproportionately low number of consumer complaints, given they’re one of the ten largest life insurance companies in the United States. MassMutual is also a mutual life insurance company, meaning it’s owned by its policyholders and the company has consistently distributed dividends to those with whole life insurance policies for over 150 years.

MassMutual offers a wide range of life insurance policies, such as term, whole, universal and variable universal life insurance. In addition, if you have medical problems, MassMutual accepts a variety of conditions with their no medical exam and guaranteed acceptance policies. While MassMutual’s rates aren’t the absolute lowest for term life insurance, they’re below average as compared to the largest insurers.

  • A++ (Superior) A.M. Best Financial Strength Rating
  • 0.04 NAIC Complaint Rating (1.00 is median score, 0 would be no complaints)
  • Products: Term life insurance, whole life insurance, universal life insurance, variable universal life insurance
  • Offers no medical exam term life insurance policies
  • Guaranteed acceptance whole life insurance available

Northwestern Mutual

Northwestern Mutual
Northwestern Mutual

Consider this if you want a financially strong insurer with outstanding consumer reviews.

Northwestern Mutual is the largest mutual life insurance company in the U.S., in part because of its outstanding service. The company has some of the best consumer reviews and holds the top financial strength rating. Northwestern Mutual offers the standard term, whole and universal life insurance policies, but they also have their own policy called CompLife. CompLife is a permanent life insurance policy to which you can add term coverage if you just need the additional financial protection for a short period of time.

The one downside to Northwestern Mutual is that they have comparably higher rates for simple products, like term life insurance. However, if you’re primarily concerned with the company’s financial stability and how you’ll be treated as a customer, you’ll find few insurers that rank as well.

  • A++ (Superior) A.M. Best Rating
  • 0.03 NAIC Complaint Rating (1.00 is median, 0 would be no complaints)
  • Products: Term life insurance, whole life insurance, universal life insurance, CompLife

Companies with the Best Term Life Insurance Rates

We often recommend term life insurance as policies can be customized to nearly any situation and often have the lowest rates for coverage. But that doesn’t mean you shouldn’t shop around–term quotes can vary by over 100% for the same person depending on the company you choose. We compared quotes across multiple shopper profiles to find the companies that consistently offer the best prices and coverage.

Voya Financial (ReliaStar)

Voya Financial (ReliaStar)
Voya Financial (ReliaStar)

Consider this if you want cheap term life insurance.

Whether you’re a senior, a smoker or in perfect health, Voya’s term life insurance rates are consistently some of the lowest available. In addition, if you really want the best price, they offer a discount for paying annually.

Voya’s TermSmart policies are offered for 10, 15 and 20 year periods, and you can purchase between $100,000 to over $1 million in coverage. Term policies can also be customized with a variety of standard riders, such as an accidental death benefit, accelerated death benefit (to help with costs if you become terminally ill), and a waiver of premium rider (in the case you become disabled).

If you aren’t yet certain that you want term coverage, Voya also offers a wide selection of permanent life insurance policies and you can convert your policy later without having your health reassessed.

  • A (Excellent) A.M. Best Rating
  • 0.25 NAIC Complaint Rating (1.00 is median, 0 would be no complaints)
  • Products: Term life insurance, survivorship life insurance, universal life insurance, indexed universal life insurance, variable life insurance

Pacific Life Insurance

Pacific Life Insurance
Pacific Life Insurance

Consider this if you want low-cost level term life insurance from a company with outstanding consumer reviews.

Pacific Life Insurance is not only one of the best companies for term life insurance, but they also have incredible customer service. Of all the companies we compared, they had the lowest complaint ratio and are highly rated for their customer satisfaction. Considering they also have some of the lowest premiums, even if you’re older or have health issues, Pacific Life is a top choice for term life insurance.

If you want term life insurance for a longer period of time, Pacific Life offers coverage for up to 30-year terms. In addition, you can convert your policy to permanent coverage without additional medical exams or underwriting.

  • A+ (Superior) A.M. Best Rating
  • 0.02 NAIC Complaint Rating (1.00 is median, 0 would be no complaints)
  • Products: Term life insurance, universal life insurance, indexed universal life insurance, variable life insurance

Best Online Life Insurance Companies

Until recently, you could get quoted for life insurance online but, if you want to purchase a policy, you had to complete forms and speak to an agent offline. Now a number of startups have emerged that allow you to handle the entire application process online and, in many cases, get a near-immediate approval decision.

Haven Life

Haven Life
Haven Life

Consider this if you want to buy life insurance entirely online from a trusted company with the best rates.

Haven Life provides the best term life insurance quotes for a wide variety of customer profiles while allowing you to complete the entire quote and application experience online. In addition, Haven Life offers some of the fastest approvals for coverage purchased. Though some are fully underwritten with a medical exam, many customers will get a same-day determination.

Term policies can be purchased from Haven Life for periods ranging from 10 years to 30 years, and the company offers up to $2 million in coverage. Though Haven Life’s set of riders is somewhat limited, they have all the standards you’d expect from an insurer, such as an accelerated death benefit rider and waiver of premium rider.

And, while Haven Life is a relatively new insurer, the company is backed by MassMutual (our pick for Best Rated Insurer) meaning you can be comfortable the company will be there when needed.

  • A++ (Superior) A.M. Best Financial Strength Rating
  • 0.04 NAIC Complaint Rating (1.00 is median score, 0 would be no complaints)

Ladder Life

Ladder Life
Ladder Life

Consider this if you want to purchase life insurance online, and expect your needs may change over time.

Ladder Life is a new insurer focused on simplifying the process of purchasing coverage, but also addressing people’s changing financial situations. The amount of life insurance you need changes over time so, as part of their platform, Ladder Life allows you to easily increase or decrease your policy limits. This means you don’t have to pay for unnecessary coverage now if you expect your financial situation to change later, such as if you expect to have a kid in the next several years.

Though Ladder Life’s rates aren’t the absolute lowest, the company is quite competitive, often with below average premiums. Their term life policies can be purchased for periods of 10 to 30 years, and Ladder lets you purchase up to $8 million in coverage. This is the highest coverage limit we came across for a completely-online insurer.

  • Underwriter has A- (Excellent) A.M. Best Rating
  • Payment Options: Electronic Funds Transfer (EFT), Direct bill

Top Whole Life Insurance Companies

Whole life insurance is the most popular form of lifelong coverage as, it not only provides a death benefit, but also has a cash value that grows consistently over time. The cash value can be borrowed against if you want to cover an expense, such as buying a car or paying medical expenses. It can also be returned to you if you ever decide that you no longer want coverage. Since whole life insurance needs to be able to provide coverage for decades, we analyzed insurers to find the largest companies with the highest possible financial strength ratings.

Northwestern Mutual